Finding Text
Preparation of Financial Statements. Condition: The Organization relies on its audit firm to assist in preparing its financial statements, accompanying disclosures, supplemental schedules and adjusting journal entries. However, as independent auditors, the audit frim cannot be considered part of the Organizaiton's internal control system. Criteria: Preparation of financial statements, related disclosures, supplemental schedules and adjusting journal entries in accordance with the accounting principles generally accepted in the United States of America. Effect: As a result of this condition, there is a higher risk that any potential material omissions or other errors would not be identied and corrected. Cause: A new accounting standard was issued, but not recorded on the financial statements. Recommendation: Management should remain alert to revisions in accounting standards. In addition, management should closely review financial statements and hold regular discussions with its assurance service providers concerning new accounting principles. Response: We will continue to review the financial statements, related disclosures and supplemental schedules prior to issuance.